KEY CONCEPTS/TERMINOLOGY IN ECONOMIC GEOGRAPHY:

Balance of A country’s financial statement showing its transactions

payment with the rest of the world.

Balance of trade The value of exports minus the value of imports.

Bridge industries Industries that is located between the source of raw

materials and the customer, e.g., oil refineries.

Centralisation Movement of industries into core areas.

Decentralisation Movement of activities away from overcentralised areas.

Economic Activities that people practise to meet their needs or earn

activities a living.

Exports Goods and services that are sold to foreign countries.

Favourable trade Occurs when the value of exports is greater than the value
balance of imports.

Food insecurity. When most people have lack of access to quality,

nutritious food in a country for sustainable living.

Food security When all the people in a country have access to adequate
safe and nutritious food for sustainable living.

Footloose Industries that can be randomly located without being

industries affected by factors such as resources or transport, e.g.,
diamond processing and computer chip manufacturing.

Foreign exchange The money paid to South Africa by other countries, e.g.,
dollars and pounds, in exchange for goods and services.

Formal sector. Registered businesses that are licensed to sell goods or

provide services.

Globalisation The way in which the economic, social, political and

cultural activities of countries across the world are
interconnected (working together).

Gross Domestic The total value of goods and services produced within
Product (GDP the borders of the country in a year.

Gross National The total value of goods and services produced by the
Product (GNP) permanent citizens of a country in one year (note that
permanent citizens may work out of the country).
Hawker An informal street trader.

Home market Products sold within the country South Africa.

Imports Goods and services that are bought from foreign

countries.

Industrial Industrial estates or areas aimed at economic growth and

Development new investment; used by developing countries to attract
Zone (IDZ investment, create jobs and boost exports.

Informal sector Activities by small, unregistered businesses that sell

goods or provide services without being licensed, e.g.,
petty trade, casual employment, spaza shops and street
hawkers or traders.

Infrastructure Transport network (roads, railways) and services

(electricity, telecommunication, water and sewerage) that
are in place.

Large-scale The production of crops and livestock that is intended for

farming commercial purposes, i.e., selling in retail stores/shops.

Semi-skilled A worker who does routine tasks (simple tasks that are
worker done on a regular basis); someone who is not skilled or
trained to do specialised work (difficult tasks that need
special training).

Skilled worker A worker who has a specific set of skills or specialised

knowledge that has usually been obtained through formal
training.

The production of crops and livestock that is intended for

Small-scale home consumption and a small portion for the home/local
farming market using small plots of land and often using very little to
no expensive technologies.

Subsistence Production to meet the demands of the farmer and his/her

farming family on a small piece of land

Spatial Programme aimed at improving infrastructure and

Development attracting business investments in rural areas that were
Initiatives (SDI) neglected and underdeveloped.

Tertiary activities Activities that deal with the supply of services, e.g.,
banking, trade and transport.

Trade: The flow of goods and services from producers to

 consumers across the world.

Value-added Raw materials that have been processed to add to their

products value.